TLDR:
- Zero-capex solar empowers businesses to reduce electricity bills without purchasing hardware
- 2 primary models—Power Purchase Agreements (PPA) and Corporate Renewable Energy Supply Scheme (CRESS)---enable companies to access renewable energy with zero upfront investment
- The article compares PPAs with CRESS, highlights cash-flow benefits, and explains how fixed solar tariffs safeguard against future grid price increases
- It details how system sizes and contract terms are customised for factories, warehouses, and offices, then outlines the audit, design, and savings-projection steps before installation.
Rooftop solar can significantly reduce electricity costs, yet many Malaysian companies hesitate due to the initial investment required. Zero-capex solar plans eliminate this obstacle. A third‑party developer funds, installs, and maintains the system while the site owner pays only for the energy it produces. This results in cleaner power and predictable savings from day one.
Zero Upfront Cost Solar Plans Explained
Zero capex agreements come in 2 main forms, both allowing energy users to enjoy solar without purchasing equipment.
Understanding Power Purchase Agreements and Corporate Renewable Energy Supply Scheme (CRESS)
Zero-capex solar replaces equipment ownership with an energy service: you pay only for the clean electricity generated, not the hardware itself—making it ideal for commercial property owners and tenants seeking predictable energy savings without capital strain.
Power Purchase Agreement (PPA)
Under a PPA, a solar developer designs, finances, builds, and maintains the rooftop system. The property owner (or tenant) then buys the solar electricity at a pre-agreed tariff that remains below Tenaga Nasional Berhad (TNB) grid rates throughout the contract. This model suits businesses with stable long-term occupancy—such as factories, warehouses, or corporate offices—looking for maximum savings and long-term tariff stability.
Corporate Renewable Energy Supply Scheme (CRESS)
CRESS allows corporations to purchase renewable energy from a licensed solar generator through the grid, without hosting the panels on their property. It’s ideal for companies with multiple sites or limited rooftop space, providing flexibility to source clean energy remotely while still enjoying zero-capex benefits. Contracts typically involve longer off-take terms and are governed by Energy Commission (ST) regulations.
Solar PPA vs CRESS: Commercial Solar Comparison
If you want to go solar with zero upfront investment, 2 main third-party financing options are available: the PPA and CRESS:.
| Feature | Power Purchase Agreement (PPA) | Corporate Renewable Energy Supply Scheme (CRESS) |
| System Location | Installed on your property (rooftop or carpark) | Solar energy supplied through the grid from an external solar farm |
| Ownership & Maintenance | Handled by the solar developer | Managed by licensed renewable energy generator |
| Payment Structure | Pay per kWh consumed from your onsite solar system | Pay a negotiated renewable energy tariff via the grid |
| Ideal For | Businesses with suitable rooftops or dedicated facilities | Corporations with multiple or leased sites lacking direct installation space |
| Savings Potential | Higher due to direct generation and no transmission losses | Moderate, with energy sourced remotely |
| Contract Duration | Typically 10–20 years | Typically 15–25 years under CRESS agreements |
| Regulatory Framework | Governed by SEDA and TNB net-offsetting mechanisms | Governed by the Energy Commission (ST) and TNB grid integration |
In summary, PPAs deliver the greatest savings for companies with available roof space, while CRESS offers an alternative zero-capex path for corporates seeking offsite renewable energy without infrastructure commitments.
Financial Benefits for Malaysian Energy Consumers
Zero-capex solar removes the upfront-cost barrier and tackles the 2 main concerns of cash-flow pressure and rising utility tariffs.
Immediate Cost Reduction Without Capital Investment
Start saving money with zero-capex solar from the very beginning without straining cash flow.
- No Upfront Cost: You pay nothing to design, buy or install the system.
- Preserved Capital: Keep funds free for stock, operations, or growth instead of tying them up in equipment.
- Instant Savings: The PPA tariff sits below your current Tenaga Nasional Berhad rate, so you see positive cash flow as soon as the system is switched on.
Protection Against Rising Electricity Tariffs and Surcharges
A zero-capex contract, such as a PPA, serves as a financial hedge against grid-price fluctuations.
- Fixed Rates: A zero-capex PPA locks in a predictable solar tariff for the full contract term.
- Tariff-Hike Shield: That stable rate protects much of your energy spend from grid price spikes, fuel surcharges, and new levies.
- Budget Certainty: With only a small, pre-agreed yearly adjustment, finance teams can forecast energy costs well into the future.
Zero-Capex Solar for Businesses
Zero-capex solar suits any high-consumption site—whether a multinational distribution centre, factory, or retail complex. The objective is always clear: lower monthly energy costs and a reliable, self-sustaining power supply.
Tailored Solutions for Different Energy Consumption Patterns
Every business has unique load profiles and operational hours, so solar financing models like PPAs are customised to match specific consumption habits and roof capacities.
- Factories and Industrial Buildings: Systems are sized to cover daytime machinery loads, trimming the most expensive peak-hour purchases.
- Offices and Retail Complexes: Mid-sized systems offset lighting, HVAC, and equipment usage during daylight hours, improving sustainability credentials while cutting operating costs.
- Warehouses and Distribution Centres: Large, unobstructed roofs enable scalable solar setups that can offset a significant share of energy consumption.
Struggling to believe zero-capex solar really cuts costs?
See how others have broken the cycle—browse our Commercial Project Showcase to watch businesses slash bills from day one.
How Solar Financing Without Investment Improves Cash Flow
Zero-capex solar improves cash flow in 2 ways.
- Avoids Debt: You do not need to take out a loan or use business credit to acquire the system. This avoids new debt obligations and preserves your borrowing capacity for other investments.
- Instant Savings: Since the solar power rate is lower than the utility rate, your total monthly electricity bill (solar power + grid power) decreases immediately. This extra money remains in the business.
Energy Assessment and System Optimisation Process
Before any installation, a thorough analysis is conducted.
- Detailed Assessment: An energy expert studies your last 12 months of utility bills to map usage patterns, tariff tiers, and peak demand hours.
- System Design: The proposed array—for example, a 100kW office rooftop or a 500kW factory system—is matched to your operational needs and roof space.
- Savings Projection: A transparent forecast shows the fixed PPA rate, projected savings, and the system’s effect on future electricity costs.
Implementing Zero-Capex Solar with Northern Solar
Want to slash your energy bills from the start without any upfront spend?
Northern Solar provides full turnkey zero-capex solar solutions, designed and overseen by experienced engineers, supported with full-service maintenance. Contact us today to start saving.
